SANTO PAULO, May 19th (Argus) - The joint venture Exar, formed by Argentina Lithium Company and China Ganfeng Lithium Company, has been approved to be included in Argentina's Large-scale Investment Incentive Mechanism (Rigi). This will support the expansion of its flagship project Cauchari-Olaroz.
Cauchari-Olaroz is Argentina's largest lithium project, with a designed capacity of 45,000 tons per year. After the expansion, it will increase by 40,000 tons per year, bringing the total capacity of the project to 85,000 tons per year.
The Rigi plan offers benefits to approved participants, including exemption from value-added tax and import/export taxes, as well as legal protection allowing the company to resolve disputes in courts outside Argentina. It also guarantees 30 years of legal stability, ensuring that no future president will cancel these benefits during this period.
The minimum investment threshold for Rigi is $200 million, and Cauchari-Olaroz is the first development project in the lithium-rich Jujuy Province approved by this regime.
This approval will support the mining joint venture's efforts to nearly double its capacity by combining direct lithium extraction (DLE) technology.
DLE is an alternative lithium production method based on salt lake brine, reducing production time from 12-18 months to less than one hour, while using less salt lake brine and water compared to traditional evaporation ponds to produce the same amount of lithium.
